We've noted that there's been a spate of establishment-types (and establishments) that have come out denying basic conservative talking points on economic policy. Now, here's new Fed Chairman Ben Bernanke, who says that a raise in the minimum wage will not cause inflation. BNA has the story. In a written response to questions from Rep. Ginny Brown-Waite (R-Fla.), Bernanke avoided addressing whether he thought the federal minimum wage should be raised, but he said the small number of workers affected would mean that overall labor costs and inflation would see little upward pressure.

A year ago today, of course, Hurricane Katrina hit New Orleans. I don't have much to add to all that's been said so far, except for that we don't really know how the federal government has been spending the money it allocated for the relief and recovery effort. Amy Liu, a researcher for the Brookings Institute who's been tracking the recovery for the last year, should know what the federal government has been spending the money on. But as she said on the Tavis Smiley show in July, nobody really does.

Coming soon... On Labor Day 2006, the Economic Policy Institute releases its advance edition of The State of Working America 2006/2007.

Via Kevin Drum, we may now know why CBO found an unexpected drop in Medicare spending this year. Actual spending hasn't gone down. Rather, the Bush administration is waiting until next fiscal year to pay some of its bills from this year. That way, some of the spending on services performed this year will get counted in the FY07 budget. And when the CBO puts out its FY07 budget projection, there'll be no pesky election to worry about. Here's an excerpt from a great article on the scheme, from Barron's (sub. req'd).